Yahoo Finance

• Total Revenue: $285.2 million in Q4 2024, down from $309 million in Q4 2023 due to one less operating week.

• Comparable Restaurant Revenue: Increased by 3.4% in Q4 2024, excluding deferred loyalty revenue impact.

• Adjusted EBITDA: $12.7 million in Q4 2024, an increase of $2 million from Q4 2023.

• Restaurant Level Operating Profit: 11.5% of restaurant revenue, a decrease of 70 basis points from Q4 2023.

• General and Administrative Costs: $18.4 million in Q4 2024, down from $22.7 million in Q4 2023.

• Selling Expenses: $5.7 million in Q4 2024, down from $6.4 million in Q4 2023.

• Cash and Cash Equivalents: $30.7 million at the end of Q4 2024.

• Outstanding Principal Balance: $189.5 million under the credit agreement at quarter end.

• 2025 Revenue Guidance: Between $1.225 billion and $1.25 billion.

• 2025 Restaurant Level Operating Profit Guidance: 12% to 13%, an increase of 120 to 220 basis points from 2024.

• 2025 Adjusted EBITDA Guidance: $60 million to $65 million, excluding non-cash stock-based compensation.

• 2025 Capital Expenditures Guidance: $25 million to $30 million.

• Store Closures: Expect to close 10 to 15 restaurants in 2025.

• Warning! GuruFocus has detected 3 Warning Signs with RRGB.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Red Robin Gourmet Burgers Inc (NASDAQ:RRGB) reported a 600 basis point improvement in traffic from the first quarter to the fourth quarter of 2024.

• The revamped Red Robin royalty program led to a membership growth of approximately 1.5 million members, ending the year with 14.9 million members.

• Dining guest satisfaction scores increased by approximately 8% points compared to 2023, surpassing the casual dining average.

• The company delivered a 3.4% increase in comparable restaurant revenue in the fourth quarter, excluding the impact of a change in deferred loyalty revenue.

• Adjusted EBITDA increased by 19% to $12.7 million during the fourth quarter, showcasing effective management of the middle of the P&L.

Negative Points

• Total revenues for the fourth quarter were $285.2 million, down from $309 million in the same period last year, primarily due to fewer operating weeks.

• Restaurant level operating profit as a percentage of restaurant revenue decreased by 70 basis points compared to the fourth quarter of 2023.

• Approximately 70 restaurants generated a restaurant level operating loss of $6 million in 2024, impacting overall profitability.

• The company plans to close 10 to 15 underperforming restaurants in 2025, which could lead to short-term disruptions.

• The decline in guest traffic was noted, although partially offset by an increase in guest check average.